Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model NEW YORK ( TheStreet) -- Bridge Bancorp (Nasdaq: BDGE) has been downgraded by TheStreet Ratings from buy to hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, compelling growth in net income and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including relatively poor performance when compared with the S&P 500 during the past year, disappointing return on equity and feeble growth in the company's earnings per share.
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- The revenue growth greatly exceeded the industry average of 16.4%. Since the same quarter one year prior, revenues rose by 23.4%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Commercial Banks industry average. The net income increased by 23.7% when compared to the same quarter one year prior, going from $2.48 million to $3.06 million.
- The gross profit margin for BRIDGE BANCORP INC is currently very high, coming in at 75.00%. Regardless of BDGE's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, BDGE's net profit margin of 17.50% compares favorably to the industry average.
- In its most recent trading session, BDGE has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry, implying reduced upside potential.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Commercial Banks industry and the overall market on the basis of return on equity, BRIDGE BANCORP INC has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
-- Written by a member of TheStreet Ratings Staff